If a Decrease in the Price of Gasoline Increases the Demand

question 331

Multiple Choice

If a decrease in the price of gasoline increases the demand for large cars, then

• A) gasoline is an inferior good.
• B) gasoline and large cars are substitutes in consumption.
• C) large cars are an inferior good.
• D) gasoline and large cars are complements in consumption.

---

Definitions:

Island Arcs

Chains of islands formed close to continental margins over a subduction zone where one oceanic plate is forced under another.

Continental Plates

Large landmasses made of continental crust, floating on the viscous upper mantle of the Earth, and continually moving due to tectonic processes.

Mountain Ranges

Chains or clusters of mountains that are formed by tectonic plate interactions or volcanic activity.

Continental Collision

The process whereby two continental plates collide, leading to mountain building and seismic activity.